For first time in nearly eight years, new home, second-hand home prices fell across China’s tier-1,2,3 cities in Oct
For first time in nearly eight years, new home, second-hand home prices fell across China’s tier-1,2,3 cities in Oct

For first time in nearly eight years, new home, second-hand home prices fell across China’s tier-1,2,3 cities in Oct

 

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China’s housing market weakened further in October, with new home and second-hand home prices falling month on month across tier-one, two and three cities, a situation happening for the first time in nearly eight years.

Among the 70 major cities, more cities saw home prices decline in October from the previous month and home price for tier-one, tier-two and tier-three cities all drop month on month, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

Of the 70 cities, 58 cities saw new home price decline on month in October, compared to 54 in September, and 62 cities saw second-hand home price drop on month, compared to 61 in September, said the NBS.

Home prices in tier-one cities grew in October from a year earlier and price in tier-two and tier-three cities fell at a slightly faster pace year over year, said the NBS.

Overall, new home prices in the 70 cities fell by 0.4% in October from the previous month and second-hand home prices fell 0.5%, slipping for the 14th consecutive month, showed calculations based on the NBS data.

New home prices in tier-one cities fell by 0.1% in October from the prior month, in line with the drop in September, showed the data.

New home prices in the capital city of Beijing grew by 0.4% on month, compared to the 0.2% growth in September; Shanghai grew 0.3%, compared to previous 0.2%; Guangzhou fell 0.3%, in line with the previous month; and Shenzhen fell 0.7% on month, compared to 0.5% drop in previous month, showed the data.

Second-hand home prices in tier-one cities fell 0.3% on month, compared to no change in September, showed the data.

Second-hand home prices in Beijing grew 0.1% on month, compared to previous 0.4% growth; Shanghai fell 0.4%, compared to previous 0.5% gain; Guangzhou fell 0.7%, compared to previous 0.6% drop; Shenzhen fell 0.2%, compared to previous 0.4% drop, showed the data.

New home prices in tier-two cities fell 0.3% in October from the previous month, expanding from the 0.2% drop in September, and second-hand home prices in the cities fell 0.5%, expanding from the 0.3% fall in the month before, said the NBS.

New home prices in tier-three cities fell 0.4% in October from previous month and second-hand home prices fell 0.5%, both in lien with the drops in September, said the NBS.

Second-hand home prices in tier-two cities fell 0.5% on month in October, compared to 0.2% drop in the month before, and second-hand home prices in tier-three cities fell 0.5% on month, in line with the previous month, showed the data.

The weak performance came despite that the central government and a number of local governments have introduced a series of measures to support the sluggish housing market.

According to data from Centaline Property, as of October 15, the number of real estate policy adjustments this year had surged by nearly 70% from a year earlier and hit a new record high.